Chequers nets 50% IRR on €275m Metabo exit

Chequers scored a cash-on-cash return just below 5x on the deal. The company was valued at 9.5x money. The GP decided to exit the company when it was approached by strategic buyers.

Out of nine interested parties, Hitachi Koki offered a good price and a number of synergies with Metabo. The company will continue to operate as an independent unit under the umbrella of its new corporate parent. For Hitachi, the Nürtingen-based company is a stepping stone into the European market.

During Chequers' holding period, Metabo focused increasingly on the improvement of the battery-capacity for its cordless products. The company's pricing, purchase and workflow were also improved.

The deal is subject to approval by antitrust authorities.

Previous funding
In June 2012, Chequers acquired a majority stake in Metabo for an undisclosed amount from its founding families in a turnaround deal. The investment was made via Chequers Capital XVI.

Company
Founded in 1925 and based in Nürtingen, Metabo is a manufacturer of power tools and supplier of accessory equipment for craftsmen. The company's target group are metal craftsmanship professionals, the metal industry and the construction and renovation trades. Its 1,800 employees work in Germany and an additional site in Shanghai. In 2014, its revenues were €374m.

People
Chequers Capital – Karsten Hartmann (director).
Metabo – Horst Garbrecht (CEO).
Hitachi Koki – Osami Maehara (CEO).

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